Aug. 17, 2012--A 168-room Hyatt Place hotel is being eyed for
property on West Kirkwood Avenue between the Chase Bank building and
the B-Line Trail.

REI Investments filed an application this week with the
Bloomington Planning Department for site plan review of the proposed
hotel at 217 W. Kirkwood Ave., which is across the street from the
Irish Lion and Crazy Horse restaurants. The Carmel company also
developed the Hilton Garden Inn at College Avenue and Seventh Street.

Jeremy Stephenson, vice president of development for REI, said
the project would create 50 permanent jobs and have a capital
investment of $25 million to $27 million.

According to documents filed with the city, the hotel would
occupy property bounded by Kirkwood, Gentry Street, Fourth Street and
the B-Line Trail. The land currently is used for surface parking. The
only structure on the property, which is owned by CFC Inc., is a narrow
building that once housed drive-through banking services.

The hotel would be three stories tall adjacent to the B-Line,
and the building would rise to seven stories along Gentry Street. The
lobby and main entrance would be at Kirkwood and Gentry, according to
the proposed site plan.

Building diagrams indicate the hotel would contain meeting
rooms, an indoor pool and a fitness center. A coffee bar/dining area
would cater primarily to hotel guests, Stephenson said, and an outdoor
seating area would be created next to the B-Line, which also would be
connected to the hotel by a side path off the trail.

The hotel would have a total of 130 indoor parking spaces on
two levels, accessible by a ramp off Gentry Street.

The Bloomington Plan Commission is scheduled to review the
proposal on Sept. 10. The land is properly zoned for a hotel, but the
commission will have to approve a site plan for the project. City
Planning Director Tom Micuda said the Bloomington City Council also
will have to approve vacation of an unimproved right-of-way through the
property before the project can go forward.

The Hyatt Place project is the second hotel proposed for
downtown this year. A SpringHill Suites by Marriott received a green
light from city officials this spring. Construction of the $17 million,
155-room hotel was approved for the northwest corner of College Avenue
and Ninth Street.

The addition of more than 300 hotel rooms downtown should help
close what a consultant to the Bloomington/Monroe County Convention
Center said last year was a deficiency of rooms that discouraged some
groups from bringing meetings to Bloomington.

Stephenson said REI agrees there is need for more hotel rooms
downtown, which he said could attract new business for the convention
center. He said that would expand the economic benefit of REI's project
beyond the direct capital investment.

Hyatt promotes its Hyatt Place brand as offering an array of
services for business travelers and families, including meeting rooms
for small corporate events. Stephenson said the brand is not considered
a full-service hotel, which is what the convention center consultant
recommended should be developed in conjunction with any future
expansion of the convention center.